• September 2019
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Notice of Meeting

The legal notice to stockholders stating the time and place of a stockholder annual meeting that is normally attached to the front of a proxy statement.

 

Publicly traded companies subject to the reporting rules of the U.S. Securities and Exchange Commission are largely beholden to their shareholders. As a result, one of the mandates that the SEC imposes is that public companies conduct an annual shareholders meeting. Shareholders must be served with notice of this annual meeting and with notice of any additional meetings triggered by specific corporate conditions as mandated by the SEC.

 

Not every shareholder can or chooses to drop everything in order to attend a shareholders’ meeting. How boring of a world would we live in if shareholders’ meetings were consistently the hottest ticket in town? As a result, legal meeting notices are often paired with proxy information and/or information statements related to the actions being taken at an upcoming meeting. That way, shareholders can make an informed decision about whether to attend, how to vote, etc.

 

Generally, when the management of a company notifies shareholders of any proposals that will be made subject to a vote at such meetings, companies are bound to comply with SEC proxy rules. Practically speaking, this means that companies must make certain disclosures to shareholders when providing them with proxy cards/statements related to any votes taking place at any given meeting of shareholders. If proxy rules do not apply, a company must still send shareholders an information statement related to actions that will be taken at the meeting that do not require proxy solicitation.

 

EXAMPLE:

Wife: “Where do you want to go on vacation this year?”

Spouse: “I just got a notice of meeting and this year’s shareholders’ gathering promises to be a real barnburner. How do you feel about spending our two weeks of vacation in Neenah, Wisconsin?”

Wife: “How do you feel about spending our two weeks of vacation by yourself while I go to Honolulu?”